Kaizen Time: Practical Strategy for Better Business

Mastering the Payroll Compliance Checklist

Written by The Kaizen Team | · February 19, 2026
 

Payroll compliance issues rarely come from one big mistake. They usually start with small oversights that compound over time.

In this Kaizen Time conversation, we walk through the most common payroll compliance gaps business owners face, including pay period rules, employee classification, handbook updates, and year-end preparation, and explain how staying proactive can prevent costly penalties and stress down the road.

Key Takeaways

  • Why payroll compliance problems often come from routine oversights, not intentional errors

  • The payroll rules business owners commonly assume are “set it and forget it”

  • Where handbook updates, pay periods, and classifications quietly create risk

  • How proactive reviews reduce compliance surprises before they turn into penalties